Acting President
Vladimir Putin said on 21 January that "the danger of
terrorist attacks in Russia has increased" in light of the
latest events in Chechnya. Putin also dismissed rumors of
impending "dictatorship" in Russia, saying that "we must
not provide a reason for feeding public terror." He added
that "protection of the individual, of a citizen's rights
and freedoms, should remain a fundamental principle of
Interior Ministry activity." "Vremya MN" reported on 20
January that "persistent" rumors are circulating regarding
the possible replacement of Interior Minister Vladimir
Rushailo with one of Putin's "own people" since
presidential elections are looming. Among the possible
replacements mentioned is Sergei Ivanov, secretary of the
Security Council and a former colleague of Putin's. JAC

RUSSIAN GENERAL MISSING IN CHECHNYA

Unnamed Chechen
spokesmen claim their forces have captured Russian General
Mikhail Malofeev, Interfax reported on 21 January.
Malofeev, who commanded a unit fighting in Grozny, was
reported missing on 18 January. The Chechen spokesmen say
he was wounded, and is currently being interrogated. They
said he will not be released or exchanged for Chechen
prisoners. ITAR-TASS on 20 January quoted unofficial
Russian Defense Ministry sources as saying that Malofeev
had been killed in battle. LF

GROZNY FIGHTING CONTINUES

Neither side made significant
territorial gains in Grozny on 20 January despite intense
fighting. Chechen spokesman Movladi Udugov on 20 January
said claims by former Grozny Mayor Beslan Gantemirov that
federal forces had taken control of Grozny's Minutka Square
and the strategic bridge over the River Sunzha were untrue.
Russian staff officer General Vadim Timchenko admitted that
Chechen and Russian forces are fighting in some parts of
Grozny for control of almost every single high-rise block.
He said that the Chechens have turned into "complex
fortresses," dpa reported. LF

CHECHEN SPOKESMAN SAYS NO TALKS SCHEDULED WITH SAIDULLAEV

Chechen presidential administration official Apti Batalov
told Interfax on 20 January that President Aslan Maskhadov
has no plans to meet with the head of the pro-Moscow
Chechen State Council, Malik Saidullaev. Saidullaev said on
19 January that he intended to travel to Grozny for talks
on 25 January with Maskhadov (see "RFE/RL Newsline," 20
January 2000). Batalov stressed, however, that Maskhadov
has repeatedly expressed his willingness to engage in a
political dialogue with Moscow. Batalov also rejected as
untrue Saidullaev's claim that four prominent Chechen field
commanders are in Moscow and may go over to the Russian
side. Batalov said that the names of all the field
commanders are well known, and that they are all currently
fighting either in Grozny or in the mountains. Meanwhile in
Moscow, Saidullaev on 20 January said he had met with
Russian Chief of Army General Staff General Anatolii
Kvashnin to mediate the surrender of the four field
commanders, Reuters reported. LF

PACE AGAIN CALLS FOR CHECHEN CEASEFIRE

Speaking at a press
conference in Moscow on 20 January following his trip to
Daghestan and Russian-controlled regions of Chechnya, the
president of the Parliamentary Assembly of the Council of
Europe, Lord Russell-Johnston, said Russia "is in complete
breach of the agreement she made" on joining the Council of
Europe in 1995, AP reported. He said that the possibility
of Russia's suspension from the Council has increased, and
again called for a cessation of hostilities and talks
between Moscow and the Chechen leadership. But Russell-
Johnston also admitted that his trip to Chechnya had given
him a deeper understanding of the "widespread" crime and
"collapse of the social and economic fabric" in Chechnya.
Interfax quoted him as saying that it will be difficult for
Moscow to conduct talks with Maskhadov since the Chechen
president is not in full control of the situation. LF

PUTIN REVEALS MORE OF HIS PLANS FOR ECONOMY...

Acting
President Putin told on 20 January said the government
"should act energetically to implement [economic] reforms
but they should be carried out under strict control and
with the involvement of the government," Interfax reported.
He added that the government's main tasks in 2000 will be
to draw up an economic development strategy, to continue
last year's positive trends, and strengthen government
institutions. Earlier in the week, Putin called on the
department heads in the Central Bank and its regional
branches to make the reduction of barter a top priority,
according to ITAR-TASS. German Gref, the director of the
Moscow-based Center for Strategic Research, said that his
think tank is preparing a "liberal" economic model with
"quite a lot" of state regulation, RFE/RL's Moscow bureau
reported. The center is supported by Putin along with
Unified Energy Systems head Anatolii Chubais and Gazprom
head Rem Vyakhirev. JAC

...AND DISPLAYS HIS RELIGIOUS BELIEFS?

"The Moscow Times"
reported on 21 January that Putin's public speeches on
Orthodox Christianity reveal him to be an "active Orthodox
Christian with a more than passable knowledge of his
faith." The daily noted that Putin specifically asked for
Moscow and All-Russia Patriarch Aleksii II's blessing for
the three-month period that he will serve as acting
president. In addition, Aleksandr Antipov, a priest of the
Church of the Life-Giving Trinity, told the daily that he
is convinced Putin is "a believer" based on his observation
of the acting president during a half-hour visit to his
church. Aleksei Malashenko of the Moscow Carnegie Center
told the newspaper that despite his personal beliefs, Putin
"has behaved in a more balanced way as far as Moslem
leaders are concerned than Russia's previous leaders."
Putin said the break in the bombing of Grozny on 7 January
was related not only to the Orthodox Christmas but also to
the end of Ramadan. JAC

LUZHKOV ALLY SWITCHES TO THE KREMLIN

Sergei
Yastrzhembskii, who recently resigned as deputy mayor of
Moscow, has been appointed to serve as an aide to acting
President Putin. Yastrzhembskii was also the deputy head of
Fatherland-All Russia's campaign headquarters. According to
Russian agencies on 20 January, Yastrzhembskii will be
responsible for coordinating information on Russia's
military campaign in Chechnya as well as for overseeing the
Kremlin's relationship with the media. Presidential
spokesman Aleksandr Gromov said Yastrzhembskii's
appointment will expire as soon as Russia's "anti-terrorist
operation in the North Caucasus ends." Gromov also said
Yastrzhembskii's appointment indicates that there is no
conflict between Putin and Moscow Mayor Yurii Luzhkov.
According to "Kommersant-Daily" on 21 January, Putin
decided to include Railways Minister Nikolai Aksenenko in
his presidium at the last minute. According the daily, it
is the first time a railways minister has been included in
the presidium in the last decade. JAC

DUMA STAND-OFF CONTINUES...

Duma deputy [Union of Rightist
Forces (SPS)] Boris Nemtsov told reporters on 20 January
that the factions of the SPS, Fatherland-All Russia (OVR),
and Yabloko will continue their boycott of State Duma
sessions on 26 January. Meanwhile, Duma Speaker Gennadii
Seleznev said that if the representatives of the boycotting
factions refuse to accept the deputy speaker and committee
head posts that have been left open for them, those posts
will be distributed among other parliamentary groups.
"Kommersant-Daily" noted on 21 January that conflict is
quickly becoming a drawn out trench war with none of the
parties willing to compromise, as Putin "remains silent."
Aleksandr Voloshin, presidential chief of staff, said on 20
January that the new Duma "started working--not without
problems--but parliamentary procedures were observed. This
is a manifestation of democracy." JAC

...AS DUMA OPPOSITION FLOATS IDEA FOR SINGLE PRESIDENTIAL
CANDIDATE

Sergei Ivanenko, coordinator for the Yabloko
faction, told "Segodnya" on 21 January that he does not
rule out the possibility that the Duma opposition groups
will agree to support a single candidate in the
presidential elections. "Vremya MN" noted the previous day
that "deliberately or not, the Kremlin has nailed together
a coalition of parties that could end up in an alliance
after they were pointlessly humiliated altogether."
However, it concluded that the groups are unlikely to form
a "real alliance" because "every participant in this
opposition wants to be the boss." JAC

TELEVISION CHIEF TAKES LONG VACATION

NTV announced on 20
January that the station's head, Oleg Dobrodeev, is on
vacation for an unspecified length of time. Yevgenii
Kiseleov, anchor of the weekly program "Itogi," was named
acting general director. NTV owner and Media Most head
Vladimir Gusinskii was reportedly dissatisfied with NTV's
coverage of the Chechen conflict and felt it hewed too
closely to the official Defense Ministry line. However,
"The Moscow Times" reported that media analysts suspect
that Dobrodeev was probably pushing for more critical
coverage of the war. Robert Coalson of the National Press
Institute told AP that Dobrodeev's departure comes at a
time when NTV and other media outlets are facing pressure
from the government to take stands on issues relevant to
the upcoming presidential elections. JAC

MABETEX HEAD EXPLAINS CREDIT CARD SCANDAL

Mabetex head
Bexhet Pacolli told "The New York Times" on 21 January that
he helped former President Boris Yeltsin's family obtain
credit cards but added that he "did not make any guarantee
to cover the bills." He explained that "in 1995, no Russian
banks had credit cards and they had no convention with
credit card companies." Pacolli provided a personal
guarantee for the Russia-based Industrial International
bank, which the Yeltsin family used. This enabled Banca del
Gottardo to issue credit cards to the Yeltsins. Pacolli
added that the arrangement lasted only two months, because
Industrial International later signed a contract with Visa
in the United States. JAC

MOSCOW PLANS FOR EXPANDED BLUE WATER NAVY

Admiral
Vladimir Kravchenko, the chief of staff of the Russian
navy, told "Izvestiya" on 18 January that Russia must
maintain a naval presence in all strategic areas of the
world. Asked about Russia's plans for submarine
activities, he responded: "I can only say that you will
not see our submarines and we hope that you will not hear
them." PG

PUTIN RECEIVES ITALIAN LEADER

Acting President Putin
received Italian Foreign Minister Lamberto Dini on 20
January to discuss expanded economic relations between
their two countries, RTR Vesti reported. Their discussions
focused on the Fiat company's operations in Nizhnii
Novgorod, aircraft construction, and the Blue Stream gas
export program. The Russian Foreign Ministry said German
Foreign Minister Joschka Fischer is scheduled to visit
Russia on 21 January and U.S. Secretary of State Madeleine
Albright is slated to arrive on 31 January. The French and
British foreign ministers will visit the country in
February. PG

PUTIN'S SPECIAL TIES WITH GERMANY RECALL LENIN'S

In
advance of German Foreign Minister Joschka Fischer's
meeting with acting President Putin, one Moscow-based
observer told the "Financial Times" on 21 January that
"Putin is the first Russian leader to spend so much time
abroad -- and to have such a special relationship with
Germany -- since Lenin." German officials have already
suggested that the new Russian leader may have "sympathy
for our country." PG

JEWISH OFFICIAL MURDERED IN MOSCOW

The dead body of
Rakhamin Yukhanov, an administrator of the Moscow Central
Synagogue, was found in his apartment on 20 January. Moscow
police believe that he was murdered. They found a knife
with a broken handle next to his body. According to
Interfax, Yukhanov was an official of the Sephardic
community, which does not have its own synagogue in Moscow.
He was 68. JAC

MIR FINDS ANOTHER FOREIGN BENEFACTOR?

Russian Space Agency
head Yurii Koptev on 20 January said the government has
approved a program that will keep the space station "Mir"
operational until August 2000. A new crew will be sent out
around the end of March and a cargo ship will be launched
on 1 February. Koptev also referred to a foreign company
that has agreed to finance Mir's operation. Yurii Semenov,
general designer at Energii, said that "the company has
already provided some funds and has agreed to provide more
financing under certain conditions." According to Koptev,
maintenance of the station until August will require 750
million rubles ($26 million). JAC

GROUNDING OF RUSSIAN CARRIER CUTS OFF FAR EAST

One of
Russia's largest domestic airlines, Domodedovo Airlines,
cancelled all of its flights on 20 January because the
federal tax inspectors froze its accounts, "Kommersant-
Daily" reported the next day. Domodedovo services around 70
percent of all flights to cities in the Far East, such as
Vladivostok, Yuzhno-Sakhalinsk, and Khabarovsk. In
addition, it is the sole airline servicing some cities,
such as Anadyr and Yuzhko-Sakhalinsk. The airline owes the
federal government some 16 million rubles ($560,000);
however, the company claims that the government owes the
airline more than 200 million rubles. Criminal proceedings
have been launched against company head Aleksandr Akimov.
JAC

GEORGIAN RULING PARTY CHOOSES SHEVARDNADZE AS PRESIDENTIAL
CANDIDATE

The Union of Citizens of Georgia (SMK), the
largest faction in the Georgian parliament, on 20 January
officially notified the Central Electoral Commission that
it has chosen incumbent President Eduard Shevardnadze as
its candidate in the 9 April presidential poll, Caucasus
Press reported. The SMK must now collect 50,000 signatures
in support of Shevardnadze's candidacy by 19 February 2000.
LF

RUSSIANS IN KAZAKHSTAN WANT EQUAL REPRESENTATION

Addressing a meeting in Almaty on 20 January of
organizations representing Kazakhstan's ethnic Russian
community, "Russkaya obshchina" leader Yurii Bunakov
appealed to local Russians not to leave Kazakhstan for
Russia in view of the social and economic problems that
country is experiencing, RFE/RL's Almaty correspondent
reported. But Bunakov admitted that Russians in Kazakhstan
feel they have been treated as "step-children" since the
demise of the USSR. He argued that all Kazakhstan's ethnic
groups should be equally represented in the country's power
structures. LF

DEMONSTRATORS PROTEST ARREST OF KYRGYZ OPPOSITION PARTY
LEADER...

Some 200 people, including several parliament
deputies, congregated outside the government building in
Bishkek on 20 January to protest the arrest the previous
night of opposition El (Bei-Bechara) Party leader and
parliament deputy Daniyar Usenov, RFE/RL's bureau in the
Kyrgyz capital reported. Usenov was forcibly taken by
police from a Bishkek hospital, where he was being treated
for a heart condition. He is accused of failing to comply
with a summons to appear in court on 14 January in
connection with a case brought against him in 1996 and
subsequently closed. Usenov told RFE/RL by telephone on 20
January that neither he nor his lawyer received any court
summons. Usenov theoretically has double immunity from
arrest by virtue of being a deputy to the present
parliament and a registered candidate to contest a single-
mandate constituency in the 20 February parliamentary poll.
LF

...AS OTHER KYRGYZ OPPOSITION POLITICIANS THREATENED WITH
ARREST

An official of the Ar-Namys Party told RFE/RL's
Bishkek bureau on 20 January that the party's founder,
former Bishkek mayor Feliks Kulov, also faces imminent
arrest (see "RFE/RL Newsline," 6 January 2000). And a
parliament official told RFE/RL the same day that
parliament deputy Ishenbai Kadyrbekov faces arrest on
charges of assaulting and injuring a fellow parliament
deputy. Kulov and Kadyrbekov, one of the founders in 1993
of the Social-Democratic Party, are also registered as
election candidates. LF

KYRGYZ OFFICIAL DENIES GOVERNMENT'S RESIGNATION IMMINENT

Secretary of State Naken Kasiev told journalists on 20
January that there is no truth to the rumors circulating in
the Kyrgyz capital the previous day that the government was
about to resign, Interfax reported. He said that Prime
Minister Amangeldi Muraliev's cabinet "will work long and
steadily." An unnamed government official had told RFE/RL's
Bishkek bureau on 18 January that MurAliyev had submitted
his resignation to President Askar Akaev, but that the
latter had not yet accepted it. LF

KYRGYZSTAN, TAJIKISTAN DISCUSS EXPANDING ECONOMIC
COOPERATION

Tajik Premier Akil Akilov traveled to Bishkek
on 19 January for talks with President Akaev and with his
Kyrgyz counterpart, Amangeldi Muraliev, Interfax and Asia
Plus-Blitz reported. Akilov's talks with MurAliyev focussed
primarily on economic cooperation. The two premiers signed
agreements on free trade and on the mutual protection of
investments. They also agreed to establish a bilateral
commission to resolve border issues, noting the desire of
both sides to develop coal, gas, and mineral resources
located in the immediate vicinity of their common border.
Akilov also told journalists that the two countries will
prepare a joint appeal to the World Bank for a credit to
finance the reconstruction of cross-border highways as a
way to encourage cross-border trade. LF

PARTY LIST CANDIDATES REGISTERED FOR TAJIK ELECTION

The
Central Commission for Elections and Referenda on 20
January completed the process of registering the party
lists submitted by the six political parties contesting the
27 February elections to the lower house of the Tajik
parliament, Asia Plus-Blitz reported. The commission said
that none of the parties managed to submit the necessary
documentation to secure the registration of all 22
candidates it proposed on time. So far, none of the parties
has lodged a complaint. The ruling People's Democratic
Party of Tajikistan registered 21 candidates, the Communist
Party 20, the Democratic Party 19, the Socialist Party 18,
and the Islamic Renaissance Party and Adolatkhoh 15 each.
LF

SON OF DETAINED TURKMEN OPPOSITION POLITICIAN FACES
CRIMINAL CHARGES

Murat Nurmamedov has been placed under
house arrest and faces criminal charges of armed
hooliganism, RFE/RL's Turkmen Service reported on 20
January quoting OSCE and Western embassy officials in
Dushanbe. Mamedov's father, Nurberdy, who heads the
unregistered Agzybirlik opposition party, was arrested in
Ashgabat earlier this month (see "RFE/RL Newsline," 10
January 2000). LF

MORE REVELATIONS FROM FORMER BELARUSIAN CHIEF BANKER?

Former Belarusian National Bank Chairwoman Tamara Vinnikava
on 20 January called the Belarusian Helsinki Committee to
announce that she will "soon" give an "extensive interview"
to the media, Belapan reported. Vinnikava said she will
describe how she managed to escape from house arrest in
Minsk last April and what happened to the opposition
politicians who disappeared last year, including Viktor
Hanchar and Yury Zakharanka. Vinnikava already gave some
inside information to the media last month (see "RFE/RL
Poland, Belarus, and Ukraine Report," 21 and 28 December
1999). Some Belarusian observers believe she is now in
Great Britain. JM

UKRAINIAN PARLIAMENT IN TURMOIL...

The center-right
majority in Ukraine's legislature on 20 January failed to
push through a vote calling for the resignation of
parliament chairman Oleksandr Tkachenko and his deputy Adam
Martynyuk. After failing to get the vote, the deputies
started yelling at Tkachenko to step down. But the
Communist and other leftist deputies stood up to block
access to the parliamentary presidium and the speaker's
rostrum, and Tkachenko announced a recess. The center-right
majority claims to have collected 235 signatures in support
of a motion to oust both Tkachenko and Martynyuk and to
introduce amendments to the parliament's regulations. Later
the same day, the majority decided to hold an alternative
parliamentary session on 21 January at a separate location,
Interfax reported. JM

...WHILE CRIMEAN LEGISLATURE MOVES TOWARD RECONCILIATION

Ten deputies from the Respublika caucus in the Crimean
legislature on 20 January appealed to their colleagues to
resume their work in parliament, Interfax reported. The
Respublika and Zlahoda caucuses have blocked the
continuation of the current parliamentary session since
December (see "RFE/RL Newsline," 20 January 2000). The
deputies said the parliamentary standoff in Crimea has
paralyzed both the legislative and executive branches on
the peninsula and undermined their authority. Crimean
parliamentary speaker Leonid Hrach has called for the
legislature to resume working on 21 January. JM

UKRAINIAN PRESIDENT TO PRESS ON WITH REFERENDUM

Leonid
Kuchma on 20 January pledged to press ahead with a
referendum aimed at creating a more compliant parliament,
Reuters reported. "The referendum will take place. Let no
one doubt that. The world should see that our country is
moving ahead and developing," the agency quoted Kuchma as
saying at a meeting with local authority heads. Speaking at
the Academy of State Management later that day, Kuchma said
the voters' responses to five of the referendum's six
questions (see "RFE/RL Newsline," 17 January 2000) will be
written into the constitution "immediately." He said a
special law will have to be adopted if voters decide to
support the creation of a bicameral legislature. JM

GAZPROM AGREES TO RESCHEDULE UKRAINE'S GAS DEBT

Following
his meeting with Gazprom head Rem Vyakhirev in Kyiv on 20
January, Ukrainian Prime Minister Viktor Yushchenko said
the Russian company has agreed to reschedule Ukraine's gas
debt payments, Interfax reported. Yushchenko added that
Gazprom and Ukraine will combine the country's state and
commercial debt obligations into one package and sign a
joint protocol on repayment within a month. He declined to
provide a precise gas debt figure, saying only that Gazprom
estimates it to be about $1.7-2 billion. Vyakhirev refused
to comment on his talks with Yushchenko. JM

LITHUANIAN FARMERS RECEIVE MOST SUPPORT IN BALTICS

The
Lithuanian agricultural sector receives more state support
than the same sectors in Estonia and Latvia, ELTA reported
on 20 January, citing a study by Vygandas Paulikas. The
study showed that state support per hectare of cultivated
land in Lithuania for 2000 will be $51.50, compared with
just $32.75 in Latvia and $27 in Estonia. The Lithuanian
government's budget for 2000 allocates about 659 million
litas ($164.75 million) to agricultural support. Farmers in
Lithuania receive more support than their counterparts in
such countries as the Czech Republic, Canada, and
Australia. Lithuania had a trade surplus in agricultural
goods with the EU in 1999. MH

POLICE ARREST MAN ACCUSED OF BEING ESTONIAN SPY

Undercover
Estonian police officers on 19 January arrested Pjotr
Kalatshov as he tried to sell about 500 grams of explosives
at a McDonald's restaurant in Tartu, "Postimees" reported.
Police also arrested an accomplice and seized three
electronic detonators in Kalatshov's car. In April 1999,
the Russian FSB intelligence service detained Kalatshov for
trying to purchase Russian military plans. Although
Kalatshov told Russian interrogators that he was a spy,
Estonian officials continue to deny any connection with
him. MH

ESTONIAN DIPLOMATS TO LEARN FRENCH BY 2003

Estonian
Foreign Minister Toomas Hendrik Ilves on 20 January told
the parliament that all Estonian diplomats must have some
knowledge of French by 2003, ETA reported. Ilves said
French is one of the most commonly used official languages
of the EU. He added that the French Embassy in Tallinn will
help Estonia with language training for its diplomats. MH

LATVIAN PARLIAMENT ADOPTS STATEMENT ON CHECHNYA

The
Latvian parliament on 20 January adopted a statement
calling on Russia to end its military campaign in Chechnya
by a vote of 70 to 13. The statement noted that Latvia
"joins other states and international organizations in
appealing to the Russian Federation to halt the warfare in
Chechnya immediately and begin negotiations with the
mediation of international organizations," LETA reported.
It also said that the "brutal war" is creating "distrust in
Russian democracy." Social Democratic deputy Risards
Labanovkis, a primary supporter of the appeal, exclaimed
"finally, thank you!" after the appeal was passed. The
draft appeal had been circulating through parliament for
months, "Neatkariga Rita Avize" reported. MH

LATVENERGO RESTRUCTURING APPROVED FOR PRIVATIZATION

The
trustees of the state-owned power utility Latvenergo on 19
January approved a plan for the restructuring and partial
privatization of the company, BNS reported. The plan
envisions the transformation of Latvenergo into a holding
company and the privatization of its regional distribution
networks. The plan also suggests that the state retain
majority control in the main heat and power plants and full
control over a series of hydroelectric plants on the
Daugava River and the country's transmission grid.
Latvenergo also approved its annual budget, which contains
61.3 million lats ($104.4 million) worth of investments,
mostly for renovations on the hydroelectric plants and
distribution network. Latvenergo has submitted the plan to
the Latvian Privatization Agency for review. MH

LITHUANIA APPROVES EU NEGOTIATOR

President Valdas Adamkus
on 20 January appointed Deputy Foreign Minister Vygaudas
Usackas as Lithuania's chief negotiator with the EU.
Lithuanian government officials responsible for EU
integration said the country's preparations to join the EU
should be complete by the beginning of 2004, ELTA reported.
MH

ELECTRICITY CONSUMPTION DOWN IN LITHUANIA

Lietuvos
Energija on 20 January released preliminary data showing
that the utility sold 7.18 billion KW/h of electricity to
domestic customers in 1999, which is 5 percent less than in
1998. Analysts say the decrease in energy consumption
reflects a contraction in the economy. However, the company
said preliminary profits for 1999 amounted to about 10
million litas ($2.5 million), mostly owing to cuts in
expenses, ELTA reported. Lithuania remains a net exporter
of electricity, with exports of 1.29 billion kWh to Latvia
and 2.02 billion kWh to Belarus. MH

POLAND EXPELS NINE RUSSIAN DIPLOMATS FOR SPYING

The
Foreign Ministry on 20 January handed the Russian
ambassador to Warsaw a note that brands nine Russian
diplomats as persona non grata in Poland, Polish media
reported. The government press center said the State
Protection Office has found that the group engaged in
"intelligence activities aimed against the vital interests
of the Polish Republic in 1999." Prime Minister Jerzy Buzek
commented that Poland has gathered detailed proof of
Russian spying. Jozef Gruszka, the chairman of the
parliamentary Security Services Committee, told PAP that
the alleged spying activities dealt "mainly with political
and economic matters." The same day the Russian Foreign
Ministry called the expulsion an "openly unfriendly and
provocative step," adding that it is "unfounded." Moscow
simultaneously warned that "reciprocal measures are
inevitable." JM

CZECH POLICE EXONERATE RULING PARTY OVER 'BAMBERG
MEMORANDUM'

Police investigator Martin Hadek on 20 January
told CTK that the so-called "Bamberg memorandum" was forged
by Czech-born Swiss businessman Jan Vizek. The forgery,
which was disseminated in the media in March 1998, alleged
that Social Democratic Party (CSSD) leader Milos Zeman and
other top CSSD politicians met with Vizek in Bamberg,
Germany. At the meeting, Zeman was alleged to have promised
to give Vizek and his business partners influence over
economic affairs in the Czech Republic in exchange for a
loan to the CSSD. Hadek said the forged memorandum
contained fictitious minutes for the meeting and copies of
the CSSD politicians' signatures that had been taken from
another document. He said police were not able to question
Vizek, who has been hospitalized in a Swiss psychiatric
facility since December 1998. Zeman said the CSSD always
knew the document was a forgery. MS

EU BACKS 'SLOVAK EFFORT TO CATCH UP'

European Commission
President Romano Prodi on 20 January told the Slovak
parliament that the commission supports the country's
"attempt to catch up with countries that have already
started negotiations for EU membership," AP reported.
Prodi, who was on a one-day visit to Bratislava, also
welcomed Slovakia's decision to close down two reactors at
the controversial Jaslovske Bohunice nuclear plant. Prime
Minister Mikulas Dzurinda said after meeting Prodi and EU
Commissioner for Enlargement Gunther Verheugen that
Slovakia is ready to start accession talks on 15 chapters.
But Verheugen said the negotiations will start in March on
five chapters. Prodi stressed that it is more important to
see "how many chapters will be closed, rather than opened."
Verheugen said Slovakia still has a lot of work to do on
economic reforms and on reducing its 19 percent
unemployment rate. MS

SLOVAK PRESIDENT SKEPTICAL ON NEW PARTY

After a meeting
with Dzurinda on 20 January, President Rudolf Schuster said
the most important matter for the country following the
establishment of the Slovak Democratic and Christian Union
(SDKU) is whether the coalition government and its
parliamentary majority can still function. "If the
government or the parliament's ability to solve problems
will be endangered, I shall have to think again about the
matter," Schuster said. Dzurinda said his new party will
provide people with a chance to vote in 2002 for a
formation that is "a strong political entity, and not a
disunited alliance of minor center-right parties." Dzurinda
dismissed statements that the formation of the SDKU signals
the demise of the Slovak Democratic Coalition as "absurd."
MS

SLOVAK PARLIAMENT REFUSES TO DROP CHARGES AGAINST LEXA

The
parliament on 20 January rejected a motion by the
opposition Movement for a Democratic Slovakia (HZDS)
calling for charges to be dropped against former
Intelligence Service chief Ivan Lexa, CTK reported. Lexa is
suspected of involvement in the 1995 abduction of former
President Michal Kovac's son. Lexa and other suspects in
the case received amnesties under the administration of
former Prime Minister Vladimir Meciar. Two different panels
on the Constitutional Court have produced contradictory
verdicts on the amnesties. But one of the panels ruled that
Prime Minister Dzurinda's cancellation of the amnesty
granted to Lexa was constitutional. The parliament also
rejected an HZDS motion of no-confidence in Education
Minister Milan Ftacnik. The HZDS argued that Ftacnik has
effectively shut down universities that were founded under
the previous government by failing to grant them funds. MS

SLOVAK FORESTS IN GOOD SHAPE, ESTONIAN FORESTS NOT

Slovakia's forests are in better shape than the forests of
any other CENTRAL AND EASTERN EUROPEan country, according
to a 20 January report issued by the World Wildlife Fund.
The European Forests Scorecard 2000, which assessed
environmental standards in forests across Europe, gave
Slovakia 57 points out of a possible 100 points. Slovakia,
along with Sweden and Austria, received the third highest
score in Europe. The top two countries were Switzerland
(62) and Finland (61). Estonia was the worst postcommunist
country on the list (38), with only Denmark registering a
lower score (36). Other Central and East European countries
on the list were Poland (53), Hungary (52), Lithuania (51),
Romania (48), and Latvia (40). MH

ECONOMY MINISTER PREPARES 'NEW DEAL' FOR HUNGARY

Recently
appointed Hungarian Economy Minister Gyorgy Matolcsy on 20
January said the country needs a "New Deal" program to
bolster its economy. Matolcsy said that the government has
empowered him to work out a new economic policy in
partnership with the business sector, international and
Hungarian financial groups, and town councils. The package
of programs will be ready by the end of February, and will
include projects to build more highways and housing. MSZ

HUNGARIAN ENVOY FEARS PACE OF EU TALKS

Endre Juhasz,
Hungary's chief negotiator at in the EU accession talks, on
20 January said he is concerned that the pace of
negotiations with the six "fast-track" countries will slow
down after six new countries begin similar talks next
month, Hungarian and international media report. "The fact
that 12 countries will be negotiating could overload the
agendas of EU meetings, and the process of reaching common
positions could be longer," Juhasz said. MSZ

CROATIAN GOVERNING PARTIES REACH AGREEMENT

Prime Minister
designate Ivica Racan announced in Zagreb on 20 January
that his two-party coalition and the coalition of four
smaller parties concluded a 15-point agreement on the
functioning of the new government (see "End Note," below).
Racan's Social Democrats will hold half of the positions,
and his allies, the Social Liberals, will have 25 percent.
The remaining 25 percent will go to the four smaller
parties. The government will seek to reach its decisions by
consensus, but, if that fails, the two largest parties will
have the last word. The government will include a deputy
prime minister, two sub-deputies, and 19 ministers. The
ministerial portfolios will be redesigned from those of the
current cabinet in order to stress European integration and
economic reform. Racan said that no names have been decided
for the cabinet, although "Jutarnji list" of 21 January
identifies what it says are several of the key new
ministers. PM

PRESIDENTIAL ELECTION STRAINING COALITION?

Racan said in
Zagreb on 20 January that the new government consists of
six parties and that its stability will not be affected by
the upcoming presidential election that pits Drazen Budisa
of the two-party coalition against Stipe Mesic of the four-
party grouping. A spokesman for Mesic, who is the front
runner, told Reuters that Mesic will work closely with
Racan "to achieve political and economic stability for
Croatia." Nonetheless, Budisa and his deputy Goran Granic
accused Mesic in separate newspaper interviews of being as
potentially autocratic as the late President Franjo
Tudjman. Budisa accused the more extroverted Mesic of
"theatrics" in his campaign and stressed that the political
situation is too volatile to enable anyone to predict the
outcome. PM

GRANIC: LEARN FROM HDZ'S MISTAKES

Foreign Minister Mate
Granic, who is the candidate of Tudjman's defeated Croatian
Democratic Community (HDZ), appealed to voters to support
him in order to prevent the two governing coalitions from
controlling all top state posts. He told Deutsche Welle on
20 January that many problems arose during the HDZ's 10-
year rule because it had a monopoly on power. No party or
coalition, he added, should be allowed to acquire a
monopoly again. Granic told "Vecernji list" of 21 January
that the HDZ must become a modern, European, Christian-
democratic party. He added that he is confident that he
will be elected president in the second round. Recent
polls, however, put him a distant third behind Mesic and
Budisa. PM

HDZ TRYING TO SQUEEZE THROUGH PROMOTIONS?

"Jutarnji list"
reported on 21 January that outgoing Defense Minister Pavao
Miljavac tried to persuade acting President Vlatko Pavletic
to approve 950 promotions in the military before the new
government takes office. Tudjman was slated to approve the
promotions in late 1999, but he did not manage to do so
before falling ill. According to the independent Zagreb
daily, Pavletic said that he turned down Miljavac's request
because he does not have enough time left in office to
study each of the requests for promotion. He added that
Racan has made it clear to him that the new government will
quickly consider the requests on their merits and without
regard to political criteria. PM

MULTI-ETHNIC POLICE START WORK IN BRCKO

Some 320 police
officers -- including Muslims, Serbs, and Croats --
officially took up their duties in the Brcko district of
Bosnia on 20 January, RFE/RL's South Slavic Service
reported. International arbitrators ruled last year that
Brcko is to be a neutral district and not part of either
the Republika Srpska or of the mainly Croat and Muslim
federation. PM

BOSNIAN JOINT MILITARY COMMITTEE OK'S PEACEKEEPERS

Members
of the joint Permanent Military Committee of Bosnia-
Herzegovina formally approved plans in Sarajevo on 20
January for Bosnian contingents to take part in
international peacekeeping operations. The participants
noted that the size of local military forces was reduced by
15 percent in 1999 and that the international community
expects similar cuts in 2000. PM

BOSNIAN PARLIAMENT BLOCKS ELECTION LAW

Speaking in
Sarajevo on 20 January, a spokeswoman for the international
community's Wolfgang Petritsch criticized the joint
parliament for failing to approve the new local election
law despite appeals by the Council of Europe for it to do
so (see "RFE/RL Newsline," 19 January 2000). The law is
designed to break the major nationalist parties' grip on
power and enable moderates and non-nationalists to win
offices. Elsewhere, the OSCE, which will supervise the
local elections in April, announced that it has
disqualified nine candidates for failing to move out of
apartments belonging to other people. A major problem
hampering refugee return across Bosnia is the presence of
squatters in the refugees' flats. The squatters are usually
members of the ethnic group in control of the given region,
while the would-be returnees tend to belong to other
nationalities. PM

CROATS CHARGE DISCRIMINATION IN BOSNIA-HERZEGOVINA

Ante
Jelavic, who is the Croatian representative on the Bosnian
joint presidency, issued a document on 20 January in which
he charged that ethnic Croats are being systematically
deprived of equal legal status with the larger Muslim and
Serbian communities. Jelavic argued that the 1995 Dayton
peace agreement allows the Croats to maintain special ties
with Croatia but that unspecified "processes" are underway
to eliminate that right. Jelavic's spokesman added that the
Croats reserve the right to decide how to protect their
interests if they feel threatened, Hina reported.
Elsewhere, Jelavic told "Jutarnji list" of 21 January that
Budisa is a man deserving of respect and that nobody in
Bosnia, regardless of nationality, would oppose his
becoming president of Croatia. Jelavic dismissed some of
Mesic's critical statements about the Herzegovinian Croats
as "campaign rhetoric," adding that "if Mesic wins, we'll
sit down and talk." PM

THOUSANDS ATTEND ARKAN'S FUNERAL

Several thousand people
from Serbia, Montenegro, and the Republika Srpska attended
the funeral of Zeljko Raznatovic "Arkan" in Belgrade on 20
January (see "RFE/RL Balkan Report," 18 January 2000).
Elsewhere, Ivica Dacic, who is the spokesman for Yugoslav
President Slobodan Milosevic's Socialist Party of Serbia,
said that "Arkan was no doubt a patriot, regardless of his
contradictory biography," Reuters reported. Serbian Deputy
Prime Minister Vojislav Seselj said that "one thing is for
sure: Arkan was a true Serbian patriot, and all the
political misunderstandings and conflicts we had should now
be forgotten." PM

U.S. EMBASSY IN TIRANA PARTLY REOPENED

U.S. Ambassador to
Albania Joseph Limprecht, Albanian President Rexhep
Meidani, and Foreign Minister Pascal Milo attended a
ceremony in Tirana on 20 January to mark the partial
resumption of consular services at the embassy. Students
and government travelers will now be able to receive visas
in the Albanian capital, but private and business travelers
will still have to go to Athens for them, dpa reported. The
State Department closed down most functions at the embassy
in August 1998 owing to worries about possible terrorist
attacks by Islamic fundamentalists. PM

ITALIANS ARRESTED IN ALBANIAN AID SCANDAL

A police
spokesman said in Rome on 20 January that the director of a
1999 Italian aid mission in Vlora and three other
individuals have been arrested for corruption and abuse of
office. The four are suspected of having allowed gangs and
black marketeers to operate with impunity in the Kosova
refugee camp under their supervision. PM

ROMANIAN PARTIES INTERESTED IN TIMING OF LOCAL ELECTIONS

Party of Social Democracy in Romania (PDSR) deputy Dan
Matei Agaton on 20 January said his party wants parliament
to place priority on debating the electoral laws for the
local and general elections this year, Mediafax reported.
Agaton said the PDSR believes the ruling coalition is
procrastinating on the law for local elections so that it
can then postpone the general and presidential ballots. He
said the PDSR wants the local elections to be held in May.
The Democratic Party chairman Petre Roman told Prime
Minister Mugur Isarescu that his party also wants local
elections to be held in May. Roman said the constitution
allows the general elections to be delayed by three months,
but it does not allow for such a delay in the case of the
presidential vote. Alliance for Romania leader Teodor
Melescanu said his party wants the local elections to be
held in May or June, and the parliamentary and presidential
votes in October or November. MS

GAGAUZ-YERI TO OPPOSE MOLDOVAN PRIVATIZATION?

Dimitrii
Croitor, the governor of the Gagauz-Yeri autonomous
republic, on 19 January told a meeting of regional
intelligentsia that the autonomous region "must be the
manager" of all properties on its territory. He said the
republic's Popular Assembly had "recently" adopted a
decision to that effect. Croitor said this does not imply
that Gagauz-Yeri is "appropriating" Moldovan property but
rather "transferring" such property to its own
"management." He added that the decision is in line with
the region's constitution. Croitor said several enterprises
located on the autonomous republic's territory were
privatized "too cheaply" and have brought no income to
local authorities. Victor Cecan, chairman of a
parliamentary Control and Petitions Committee, said he has
not read the Popular Assembly's decision but added that
"laws adopted by the assembly must not contradict Moldovan
legislation." MS

BULGARIAN-TURKISH TRADE DROPS

A free trade agreement
signed last year between Bulgaria and Turkey has failed to
produce the expected results, and 1999 trade between the
two Balkan countries has fell by 27 percent compared with
the previous year, AP reported on 20 January, citing Faruk
Erkoc, the Turkish co-chairman of the Bulgarian-Turkish
business council. The free trade agreement enacted on 1
January 1999 calls for trade in industrial goods to be
fully liberalized by the end of 2001. It also reduced
tariff quotas for agricultural products. MS

BULGARIAN PRESIDENT SIGNS ACCORDS IN ISRAEL

Bulgarian and
Israeli officials on 18 January signed in Tel Aviv an
agreement on avoiding double taxation and an accord on
agricultural cooperation, BTA reported the next day.
Meeting with Israeli businessman on 19 January, President
Petar Stoyanov said Bulgaria wants to develop "mutually
beneficial cooperation with Israel" and is not asking for
"one-sided assistance." He said Bulgaria's cheap labor
force can be combined with Israeli know-how in the high
technology, agriculture, and the defense industries. MS

Croatia Votes On Monday

By Patrick Moore

Croatian voters go to the polls on 24 January to choose a
successor to the late President Franjo Tudjman. The two
leading candidates--Stipe Mesic and Drazen Budisa --are
both from the ranks of the opposition, which won the 3
January parliamentary elections. The question is what
effect the presidential vote will have on the new
government.

Monday's election is likely to be only the first
round of balloting in the race to fill Croatia's highest
office. If no candidate wins at least 50 percent of the
votes this time, a second round will come two weeks later.

The stakes are high because the constitution--
which many observers believe was written for the autocratic
Tudjman--gives the president at least 24 crucial powers.
These include key decision-making functions in military and
security policy.

All mainstream political parties agree that those
powers must be curtailed or reassigned to the government or
other bodies. No party wants another imperial Tudjman
presidency. In order to stress that his era has ended, the
leading candidates have said they do not intend even to
live in the official residence Tudjman used. But the job
still remains the highest in the country, and will
doubtless play a key role even after its powers are scaled
back.

The outcome of the presidential election is
unlikely to make much difference in terms of policies on
this or other issues, since there is a broad agreement
between the two leading candidates as to what has to be
done. These priorities include improving the economy and
standard of living, speeding up privatization, attracting
foreign investment, and accelerating Croatia's entry into
Euro-Atlantic institutions. Brussels and Washington are
particularly interested in seeing if the new government
institutes democratic reforms, enables Serbian refugees to
come home, respects the independence and sovereignty of
Bosnia-Herzegovina, and cooperates with the Hague-based war
crimes tribunal.

Both leading candidates have promised quick
action on Euro-Atlantic issues. This is largely because it
will be easier to attain clear foreign policy goals than to
restructure a faulty economy that served the interests of
the Croatian Democratic Community (HDZ), which ruled since
1990 amid charges of corruption and cronyism.

But, then, what is the center of attention in
this election if not policy? The issue is what the outcome
of the vote will mean for the power relationship between
the large two-party coalition led by Prime Minister-
designate Ivica Racan and Budisa and its smaller four-party
ally, which backs Mesic. The two coalitions teamed up to
defeat the HDZ in the parliamentary vote and have since
agreed in broad terms on power-sharing in the new cabinet.

But rivalries still persist between them. Racan
and Budisa maintain that the coalitions must share power
between them on the basis of the relative number of votes
they received in the parliamentary elections. Racan has
told reporters that this interpretation is embodied in the
power-sharing agreement. The smaller coalition, however,
would still like to control more seats than the size of its
electorate would warrant, and it would prefer that the
cabinet reach decisions by consensus rather than by
majority vote.

Racan is likely to carry the day on both issues
if Budisa holds the presidency. If Mesic becomes president,
however, the smaller coalition may feel emboldened to
challenge Racan on these and other issues. Mesic may also
use some of his presidential powers to pressure Racan to be
more mindful of his smaller partner's interests.

A second problem involves the relations within
the two-party coalition if Budisa loses the presidency.
Should that happen, the Social Democrats will still have
the prime minister's job, but there will be no
corresponding "plum" for the Social Liberals. Is it
possible that Budisa's party might seek compensation from
Racan for Budisa's loss by demanding either additional
cabinet seats or even that the prime minister's position
rotate between the two coalition partners?

Nor are these the only issues likely to come to a
head as a result of the presidential election. The HDZ will
have to face serious questions regarding its own future if,
as expected, Foreign Minister Mate Granic--the HDZ's
candidate--comes in third behind Mesic and Budisa in the
first round. The once formidable party has already begun to
implode at breathtaking speed, and its chief faction
leaders regularly exchange insults in public. Granic
himself quit his party offices in disgust and in a
desperate attempt to rid himself of the albatross of his
party. But he continued to slip in the polls, which led him
to tell reporters that he would have been better off had he
run as an independent.

It was only a few weeks ago that Granic was
leading Budisa in the polls, with Mesic trailing in third
place. Mesic is best known abroad as the Croat who was
blocked by Serbian leader Slobodan Milosevic from assuming
the rotating Yugoslav presidency in 1991. Many Croats had
regarded him as a man of the past. But the feuding within
the HDZ appears to have destroyed the candidacy of the
otherwise popular foreign minister, putting Granic out of
the running and apparently skyrocketing Mesic into a new
career.

Meanwhile, the dapper and outgoing Mesic has been
marketing himself well against the bookish Budisa. His
message is simple and apparently quite effective: A vote
for Mesic is a vote to ensure that no single party (or
coalition) will again control all the top positions of
power.